Offshore tax cheating should be stopped to bring in billions of tax revenue from those non-disclosed foreign accounts. That is according to the Department of Treasury and the Department of Justice. Thus, individual and business taxpayers must report their income from their offshore financial accounts. If you failed to submit an FBAR, you could be hit with criminal and civil tax penalties. The criminal tax punishment can go up to $250,000 or five years in prison or both.
Offshore bank account problems started in June 2008 when the IRS filed a summons that sought an order from the federal court to allow the IRS to request financial information from UBS of US taxpayers who used Swiss bank accounts to commit tax evasion. UBS did turn over the names of US taxpayers with secret Swiss bank accounts.
But the offshore bank account problems do not focus on one Swiss bank. In 2008, the government accused LGT Bank of Liechtenstein of promoting tax evasion by using foreign shell companies, anonymous transfers, and other illegal activities to hide offshore bank and financial accounts.
If you failed to report your income from your offshore bank accounts, you would face massive civil tax penalties. The maximum sentence could reach hundreds of thousands of dollars or half of the entire balance in your account. The statute of limitations for this case is six years. Now, if you did not willfully fail to file an FBAR, the penalty could still be $10,000 per violation.
Since the program of the government to encourage US taxpayers to disclose their income from offshore bank accounts started, it has received more than 12,000 voluntary disclosures. The program has been proven to be profitable to the IRS but a problem to non-compliant taxpayers. Thus, the program continues to change and develop.
If a penalty has hit you, our tax litigation attorneys can negotiate with the IRS to give you smaller civil or criminal tax penalty. Or we may be able to reverse the charges completely. There are other programs of the IRS that you can apply for to get lower penalties. However, each program has substantial risk. You must be sure that it’s handled properly. For that reason, it is vital that you consult with a tax attorney who specializes in foreign bank account(FBAR) problems.
Our tax attorneys have the experience in getting our clients real tax relief from criminal or civil tax penalties for failure to report their income from their offshore accounts. Call us today for a no obligation confidential consultation: 800-950-2237.